TO: Proximity Music Team
FROM: Tyler Harris
SUBJECT: Proposal to increase production of vinyl records
DATE: April 18, 2010
The music industry has seen a steady decline in CD sales. Experts felt that iTunes and online music would revive the industry and in some ways it has, but something else is rising and may be the future of music sales. The sales of vinyl records have been on the steady incline and may even outsell CD’s in the near future. Generation Y is showing a trend of nostalgia and this is just another example of how something old can be new again. A new business strategy needs to be developed to help generate additional revenue generating opportunities for the artists and the music companies. I propose to write a report on the effect of increasing the distribution of vinyl records in addition to turntable record players, and the revenue that can help replace the revenue lost due to illegal downloading.
Need
Gen-Y is showing a trend of shifting towards purchasing vinyl albums. Proximity's clients must realize that:
· The production and purchasing of turntables is on a steady rise.
· Artists will be able to use album covers to gain recognition for, and interest in, their work. This is important because loyal artwork fans may buy albums because of the artwork featured, generating revenue for our client.
· There is a nostalgic feel with vinyl that one does not get with CD’s or online music. This will create a niche for Gen-Y.
· The format of vinyl albums cannot be easily copied, almost eliminating the risk of piracy.
Clients are challenged with targeting Gen-Y with music because of the decline in FM radio and the rise of illegal downloading. The rise of vinyl does offer a possible niche market for tie-ins with the album cover artwork - at least a way to brand your product with something that Gen-Y will find (cool) even if they do not buy vinyl.
Clients of Proximity need this report to thoroughly understand why the sales of vinyl albums and their artwork will increase the sales and revenue of music.
Topics
The proposed report “Vinyl Albums: Back From the Dead” will cover the following topics:
· Trends in Gen-Y showing increase in vinyl sales.
· An example of album artwork generating profit for the music industry.
· How vinyl sales can reduce the risk of piracy.
· Vinyl sales will create additional markets and revenue generating opportunities for Proximity’s clients.
Sources
The following items are key resources for this report. Information is still being collected regarding the history and trends of vinyl sales.
The author examines vinyl and CD sales in 2009 compared to 2008. There are many charts and statistics on the website showing trends stating that vinyl sales are on the rise and CD sales are steadily declining. The author goes on to say that the decline in CD sales can be traced back to piracy.
The author examines why Gen-Y is making a move towards buying vinyl albums again. Vinyl has a more soft sound as opposed to the brittle sound of CD’s according to the author. The author also goes into how new technology, like the USB turntable, is going to really help vinyl make a comeback.
The author is making the observation that many consumers are going back to purchasing vinyl records and “dusting off their old record player.” The author also claims that record companies have noticed this trend and are now offering coupons for free audio downloads with the purchase of an album to have a version both online and for the record player.
The website examines the Grateful Dead through history of their artwork. Alton Kelley and Stanley Mouse were the artists responsible for most of the artwork appearing on the Grateful Dead’s albums. The artwork has become so popular and world-renowned; it is now part of an exhibit. Artists trying to make a name for themselves can promote their artwork by having it on albums with the hopes of gaining recognition just like Kelley and Mouse did in the 1960’s and 70’s.
The author examines vinyl sales and states that vinyl sales are on such an incline, that in a matter of a few years, they might outsell CD’s and end the CD era, which has already been greatly destroyed from piracy and online music availability. The author also goes on to say how companies are now coming out with record players with USB connection making it easier for users to add a record to their digital library along with having the album itself.
The author is reporting that the White Stripes were releasing their album ‘Elephant’ in a vinyl version with the hopes of preventing piracy to a degree. The band stated that with releasing their album in a vinyl version, one would have to go one extra step (converting the format) to get the album on the Internet.
TO: Proximity Music Team
FROM: Tyler Harris
SUBJECT: Proposal to increase production of vinyl records
DATE: April 18, 2010
The music industry has seen a steady decline in CD sales. Experts felt that iTunes and online music would revive the industry and in some ways it has, but something else is rising and may be the future of music sales. The sales of vinyl records have been on the steady incline and may even outsell CD’s in the near future. Generation Y is showing a trend of nostalgia and this is just another example of how something old can be new again. A new business strategy needs to be developed to help generate additional revenue generating opportunities for the artists and the music companies. I propose to write a report on the effect of increasing the distribution of vinyl records in addition to turntable record players, and the revenue that can help replace the revenue lost due to illegal downloading.
Need
Gen-Y is showing a trend of shifting towards purchasing vinyl albums. Proximity's clients must realize that:
· The production and purchasing of turntables is on a steady rise.
· Artists will be able to use album covers to gain recognition for, and interest in, their work. This is important because loyal artwork fans may buy albums because of the artwork featured, generating revenue for our client.
· There is a nostalgic feel with vinyl that one does not get with CD’s or online music. This will create a niche for Gen-Y.
· The format of vinyl albums cannot be easily copied, almost eliminating the risk of piracy.
Clients are challenged with targeting Gen-Y with music because of the decline in FM radio and the rise of illegal downloading. The rise of vinyl does offer a possible niche market for tie-ins with the album cover artwork - at least a way to brand your product with something that Gen-Y will find (cool) even if they do not buy vinyl.
Clients of Proximity need this report to thoroughly understand why the sales of vinyl albums and their artwork will increase the sales and revenue of music.
Topics
The proposed report “Vinyl Albums: Back From the Dead” will cover the following topics:
· Trends in Gen-Y showing increase in vinyl sales.
· An example of album artwork generating profit for the music industry.
· How vinyl sales can reduce the risk of piracy.
· Vinyl sales will create additional markets and revenue generating opportunities for Proximity’s clients.
Sources
The following items are key resources for this report. Information is still being collected regarding the history and trends of vinyl sales.
Cheng, Jacqui. Digital albums, vinyl made a comeback in ’09 while CD’s slide (2010, January 7). Arstechnica.com. Retrieved April 15, 2010 from http://arstechnica.com/media/news/2010/01/digital-albums-vinyl-made-a-comeback-in-09-while-cds-slide.ars.
The author examines vinyl and CD sales in 2009 compared to 2008. There are many charts and statistics on the website showing trends stating that vinyl sales are on the rise and CD sales are steadily declining. The author goes on to say that the decline in CD sales can be traced back to piracy.
Corey, Russ. The Return of Vinyl (2010, February 16). Timesdaily.com. Retrieved April 15 2010 from http://www.timesdaily.com/article/20100216/articles/2165035?Title=The-return-of-vinyl
The author examines why Gen-Y is making a move towards buying vinyl albums again. Vinyl has a more soft sound as opposed to the brittle sound of CD’s according to the author. The author also goes into how new technology, like the USB turntable, is going to really help vinyl make a comeback.
Dell, Kristina. Vinyl Gets Its Groove Back (2008, January 10). Time.com. Retrieved April 16, 2010 from http://www.time.com/time/magazine/article/0,9171,1702369,00.html.
The author is making the observation that many consumers are going back to purchasing vinyl records and “dusting off their old record player.” The author also claims that record companies have noticed this trend and are now offering coupons for free audio downloads with the purchase of an album to have a version both online and for the record player.
Grateful Dead: Now Playing at the New York Historical Society. Nyhistory.org. Retrieved April 16, 2010 from https://www.nyhistory.org/web/default.php?section=exhibits_collections&page=exhibit_detail&id=5798416.
The website examines the Grateful Dead through history of their artwork. Alton Kelley and Stanley Mouse were the artists responsible for most of the artwork appearing on the Grateful Dead’s albums. The artwork has become so popular and world-renowned; it is now part of an exhibit. Artists trying to make a name for themselves can promote their artwork by having it on albums with the hopes of gaining recognition just like Kelley and Mouse did in the 1960’s and 70’s.
Van Buskirk, Ellen. Vinyl May Be Final Nail in CD’s Coffin (2007, October 29). Wired.com. Retrieved April 14, 2010 from http://www.wired.com/entertainment/music/commentary/listeningpost/2007/10/listeningpost_1029.
The author examines vinyl sales and states that vinyl sales are on such an incline, that in a matter of a few years, they might outsell CD’s and end the CD era, which has already been greatly destroyed from piracy and online music availability. The author also goes on to say how companies are now coming out with record players with USB connection making it easier for users to add a record to their digital library along with having the album itself.
Yago, Gideon. White Stripes Battle Piracy With Vinyl (2003, January 30). Addict.com. Retrieved April 15, 2010 from http://www.addict.com/news/articles/1459763/20030130/white_stripes.jhtml.
The author is reporting that the White Stripes were releasing their album ‘Elephant’ in a vinyl version with the hopes of preventing piracy to a degree. The band stated that with releasing their album in a vinyl version, one would have to go one extra step (converting the format) to get the album on the Internet.